Unleash Prosperity Hotline Issue #349 08/16/2021

1) Paul Krugman’s Inflation Advice We couldn’t help chuckling when we saw that the Biden White House is touting a NY Times opinion piece by economist/provocateur Paul Krugman, who thinks inflation is under control. Krugman writes that the historic Bipartisan Infrastructure Deal will “alleviate the supply bottlenecks that have played a big role in recent inflation, while making workers more productive.” And by “investing in our workers and families, the Build Back Better agenda will make America richer and more productive in the long run.”  Right. So borrowing and printing money will REDUCE inflation. And that kind of sage advice wins you a Nobel Prize.  The Biden White House is evidently unaware that no one has been more consistently wrong on inflation over the last 40 years than Krugman. In 1983 he (and Larry Summers) wrote a famous memo to President Ronald Reagan called “The Inflation Time Bomb.” In that memo the two economic wonder boys argued that the low inflation rates in Reagan’s first two years in office were “merely temporary.” They predicted that “higher oil prices (sic)” and “increased consumer demand due to tax cuts,” would cause “prices to rise again.”  In reality inflation fell from 11% to 3% in two years under Reagan and continued to stay low (and so did oil prices) for pretty much the next two decades.  A Ouija board could do a better job predicting the future than Krugman.

2) Unemployment Fraud Reaches $87 Billion — So Let’s Spend More On Food Stamps An inspector general report at the Labor Department estimates nearly $87 billion of unemployment insurance fraud this past year. Not 87 million, 87 BILLION!!! https://www.oig.dol.gov/doloiguioversightwork.htm This is one of the greatest financial swindles of all time. And instead of heads rolling in Washington, the pols yawn – and even ask for MORE money for the program. CNBC recently investigated the ransacking of the UI program and was told by Michele Evermore, a senior policy advisor at the Department of Labor: “Fraud has gotten so big…What we’re seeing now is really terrifying.” She wasn’t exaggerating. As we’ve previously reported, billions of dollars have been stolen from taxpayers and deposited in the bank accounts of fraudsters living in Nigeria, West Africa, Mexico, and the like. Yet Biden and his progressive friends call unemployment benefits a “stimulus to the economy.” Right. To the economy of Africa. In the wake of the scandal, Biden has just called for raising Food Stamp payments by 25% because food costs are going up so much thanks to the Biden inflation. But don’t worry there’s no fraud to worry about in that program. They really do think we’re stupid.

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